{"id":9019,"date":"2020-11-12T14:17:03","date_gmt":"2020-11-12T14:17:03","guid":{"rendered":"https:\/\/zackspcg.com\/blog\/?p=9019"},"modified":"2022-02-26T13:06:01","modified_gmt":"2022-02-26T13:06:01","slug":"how-election-legal-challenges-may-impact-the-market","status":"publish","type":"post","link":"https:\/\/zacksim.com\/blog\/how-election-legal-challenges-may-impact-the-market\/","title":{"rendered":"How Election Legal Challenges May Impact the Market"},"content":{"rendered":"\n

Mark U. from Reno, NV\nasks: <\/em>Good morning Mitch, I\u2019m curious to hear your thoughts on how the\nmarket will respond to legal challenges and\/or an election result that could\nget dragged on for weeks or months. Thank you. <\/p>\n\n\n\n

Mitch\u2019s Response:<\/strong><\/p>\n\n\n\n

Thanks for writing, Mark. The stock market does not appear\nto be fazed by the \u2018contested\u2019 election, with the S&P 500 soaring +7.3%\nlast week and jumping over +3% as I write my response to you (on Monday). In my\nview, the stock market is looking ahead to next year \u2013 it is not so much\nfocused on the election matters of the moment.1<\/sup><\/p>\n\n\n\n

That being said, I agree with you that there will be a thin\nlayer of uncertainty with legal challenges to the election result. But in all\nthe reading I\u2019ve done from legal experts examining the matter, it appears as\nthough those challenges will not be robust enough to change the current result\n\u2013 and I think the market knows that. <\/p>\n\n\n\n

What is the market looking ahead to? Gridlock, in my view. Looking\nat 46 years of data when power was split by party between the White House and\nCongress, we find that the S&P 500 delivered an average return of 7.26%.\nThat\u2019s pretty strong. <\/p>\n\n\n\n

______________________________________________________________________________________________<\/sup><\/p>\n\n\n\n

How to Protect Your Investments Long After the Election<\/a><\/strong><\/p>\n\n\n\n

Navigating concerns surrounding the election results in\naddition to the current pandemic, is difficult for every investor, but\nparticularly for those trying to build their retirement portfolio.<\/p>\n\n\n\n

As we look ahead into the new year, we believe it is\npossible to avoid the damage of economic downturns and achieve your retirement\ngoals. However, achieving these goals involves some work: Defining your\ninvesting objectives, determining your asset allocation, managing investments\nover time.<\/p>\n\n\n\n

To help you do this, we are offering readers our free guide\nthat offers a step-by-step blueprint of our customized investing process to\npotentially help you build a sound retirement portfolio of your own.<\/p>\n\n\n\n

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______________________________________________________________________________________________<\/sup><\/p>\n\n\n\n

Investors may be wagering, in my view, that a\nRepublican-controlled Senate may prevent the Biden administration from implementing\nsweeping changes to the tax code, in particular raising corporate taxes by 7%\n(as proposed) and lifting the capital gains tax for high earners. At the same\ntime, Wall Street may be anticipating more friendly engagement with allies, and\na redoubled effort to fight the Covid-19 pandemic \u2013 assuming the plan does not\ninvolve economic lockdowns, which the Biden team has not indicated. <\/p>\n\n\n\n

Technology and health care stocks have also been rallying,\nwhich to me is a sign that the market is anticipating softer regulatory efforts\nagainst big tech, with an administration also focused on spending more on\nhealth care, not less. Additionally, though a Republican-controlled Senate is\nlikely to push back against massive fiscal stimulus favored by Democrats, it\nappears likely that a Biden administration would be more open to making a deal.\nAdditional stimulus should provide tailwinds for the economy and for stocks. <\/p>\n\n\n\n

As for the legal challenges we may anticipate for the next\nfew weeks, it is difficult to imagine how the entire election would be upended\nby the courts, particularly given the evidence that has been presented so far. Of\ncourse, no outcome is assured, but often times investing is a matter of weighing\nprobabilities. In this case, I think the probabilities are high that we already\nknow the election result, and the market is pricing-in what the economy may\nlook like a year from now.  <\/p>\n\n\n\n

During this challenging time, there are still things\nyou can do to protect your investments and create a retirement portfolio that\nmeets your financial goals. To help you do this, I recommend reading our\nguide, 7 Secrets to Building the Ultimate DIY Retirement Portfolio<\/em>.3<\/sup> It\nprovides a step-by-step blueprint of our customized investing process to\npotentially help you build a sound retirement portfolio of your own and pursue\nlong-term investing success.
\n 
\nIf you have $500,000 or more to invest, get this\nguide to learn our ideas on the step-by-step process to building and\nmaintaining a retirement portfolio that will potentially help you reach your goals\nand enjoy a secure retirement. <\/p>\n","protected":false},"excerpt":{"rendered":"

Election challenges may have a small effect, but the results themselves may have a much greater impact <\/p>\n","protected":false},"author":3,"featured_media":7436,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[66,71],"tags":[],"class_list":["post-9019","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-mitchs-mailbox","category-private-client-group"],"acf":[],"_links":{"self":[{"href":"https:\/\/zacksim.com\/blog\/wp-json\/wp\/v2\/posts\/9019","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/zacksim.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/zacksim.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/zacksim.com\/blog\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/zacksim.com\/blog\/wp-json\/wp\/v2\/comments?post=9019"}],"version-history":[{"count":1,"href":"https:\/\/zacksim.com\/blog\/wp-json\/wp\/v2\/posts\/9019\/revisions"}],"predecessor-version":[{"id":10510,"href":"https:\/\/zacksim.com\/blog\/wp-json\/wp\/v2\/posts\/9019\/revisions\/10510"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/zacksim.com\/blog\/wp-json\/"}],"wp:attachment":[{"href":"https:\/\/zacksim.com\/blog\/wp-json\/wp\/v2\/media?parent=9019"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/zacksim.com\/blog\/wp-json\/wp\/v2\/categories?post=9019"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/zacksim.com\/blog\/wp-json\/wp\/v2\/tags?post=9019"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}